Jurisdiction(s):
United Kingdom

CR Construction v Barclays: English TCC upholds autonomy of performance bonds; no injunction against bank absent fraud; termination savings clause applied; substance over form; no contractor set‑off

Published on: 24 February 2026

Published by a LexisNexis Banking & Finance expert

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Article summary

CR Construction (UK) Co Ltd v Barclays Bank Plc (Northen Gateway (FEC) No 7 Ltd, intervening) [2026] EWHC 202 (TCC)

What are the practical implications of this case?

This ruling underscores the autonomy of bank performance bonds. Save in cases of fraud, complaints about defective demands or disputes arising from the underlying contract must be pursued against the bond’s beneficiary, not the issuing bank. Where the bond’s stipulated formalities are complied with, the bank is bound to honour the demand and make payment to the beneficiary. Applying the established approach to interim injunctions in American Cyanamid Co v Ethicon Ltd [1975] AC 396, the court considered whether damages would be an adequate remedy for the party prejudiced by granting or refusing an injunction and, if not, where the balance of convenience lay. On adequacy of damages, an applicant must place before the court persuasive evidence of irreparable harm, rather than mere bald assertions. As to the balance of convenience, the court observed there was no meaningful distinction between the positions of contractor and employer: whichever way the injunction went, one side would be kept out of funds pending resolution, so the balance did not favour either party...

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